Tesla UK Sales Tumble As Chinese EV Rivals Make Gains

Tesla’s performance in the British market has suffered a dramatic setback, with new car registrations in July falling by 60 per cent compared to the previous year. Data from the Society of Motor Manufacturers and Traders shows Tesla managed only 987 new registrations, down from 2,462 a year prior, marking a significant drop in its market share to just 0.7 per cent.

This decline comes as Chinese electric vehicle manufacturers continue to strengthen their presence. BYD claimed an impressive 2.3 per cent of total new registrations in Britain, selling 3,184 cars, a sharp rise from 768 the previous year. Jaecoo, another Chinese brand making its UK debut, outperformed Tesla as well, achieving 1,915 new registrations and 1.4 per cent market share after launching last year.

The automotive industry faces a shifting competitive landscape, exacerbated by regulatory challenges and mixed public sentiment. Tesla, in particular, contends with fierce competition and a backlash against controversial political views associated with chief executive Elon Musk. Despite the launch of a revamped Model Y, Tesla has not managed to revive consumer demand meaningfully. Even so, Musk’s influence on the company remains profound. This week, the Tesla board approved a remuneration package awarding Musk 96 million shares valued at approximately $30 billion, citing the paramount importance of retaining the chief executive during this period of adversity.

Makers beyond Tesla are also experiencing market headwinds. The UK new car market overall slipped 5 per cent year-on-year in July, down to 140,154 units, signalling the weakest July since 2022 and a level still 11 per cent below that seen in 2019, prior to the pandemic. The movements underscore the volatility of the current market and highlight broader economic uncertainty.

The narrative is not uniformly negative across all sectors, however. Plug-in hybrid registrations surged by 33 per cent year-on-year, and battery electric vehicle sales grew by 9.1 per cent during the month, although this rate of growth was more modest than in previous periods. The overall slowdown may in part be traced to uncertainty over a new government grant for electric vehicles that offers up to £3,750 towards eligible models. With the criteria for eligibility yet to be confirmed, both buyers and manufacturers are reportedly waiting for more clarity before making firm commitments.

Despite slower overall sales, projections for electric vehicle uptake remain optimistic. The sector is forecast to account for 23.8 per cent of all new car registrations this year, a slight rise from previous estimates. Industry voices suggest that confirming grant eligibility, in tandem with competitive discounts across an expanding selection of electric models, could help to reignite demand in the coming months. Petrol cars remain the most popular segment with 66,271 units sold in July, although this too represents a 14.7 per cent decline year-on-year. Diesel sales fell by 7.9 per cent to 8,018 units. The best-selling model overall was the Kia Sportage, followed by the Ford Puma and Nissan Juke.

Current trends in the market highlight the dynamic shifts underway as traditional manufacturers, new entrants and evolving government policy together shape the future of motoring in Britain.